Chapter 5 – Accounting Equations – TS Grewal 2022
Question 10
Prove that the Accounting Equation is satisfied in all the following transaction of Suresh.
Also prepare a Balance Sheet.
(i) Commenced business with cash ₹60,000.
(ii) Paid rent in advance ₹500.
(iii) Purchased goods for cash ₹30,000 and credit ₹20,000.
(iv) Sold goods for cash ₹30,000 costing ₹20,000.
(v) Paid salary ₹500 and salary outstanding being ₹100.
(vi) Bought motorcycle for personal use ₹5,000.
Solution:
Prove that the accounting equation is satisfied in the following transactions
